SINGAPORE (ICIS)--Vietnam’s economy will grow by 2.4% in 2020 due to its swift fiscal and monetary actions to mitigate the economic fallout of the coronavirus pandemic, the International Monetary Fund (IMF) said on Wednesday.
“A strong recovery is expected in 2021. Growth is projected to strengthen further to 6.5% as normalisation of domestic and foreign economic activity continues,” said Era Dabla-Norris, mission chief to Vietnam and division chief in the IMF’s Asia and Pacific department.
“Fiscal and monetary policies are expected to remain supportive, although to a lesser extent than in 2020,” she said in a statement.
Vietnam’s fiscal response has largely been geared towards supporting vulnerable households and firms, Dabla-Norris said.
Monetary policy easing and temporary financial relief measures by the State Bank of Vietnam (SBV) have alleviated liquidity pressures, lowered the cost of funding, and facilitated a continued flow of credit, she said.
Vietnam's economy expanded by 7% in 2019, according to IMF data.
Visit the ICIS Coronavirus topic page for analysis of the impact on chemical markets and links to latest news.